FINANCIAL INVESTMENT : BASIC REASONS WHY YOU SHOULD GO INTO FINANCIAL INVESTMENT

Basic reasons why you should go into financial investment - Financial investment is an asset that you put money into with the hope that it will grow or appreciate into a larger amount of money. It comes in the form of stocks, bonds, CDs, and mutual funds.

Financial investment is necessary because it guarantee tomorrow's uncertainty. In business, investors and individuals are advised to make financial investment because it appreciates in the sense that you buy a stock of $20 today, and a year later it is worth $35; the stock has appreciated $15.

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Financial investment also yield dividends which are cash payments that are paid out on financial investment based on the success and earnings of a company. Eg you invest in a company's production stock and might be paid $10 a share. If you owned 500 shares you would get 500*10 which is $5000.

It also yield interests which are the fees banks, institution or government pays you for loaning them money through the purchase of CDs( certificate of deposits)and bonds.

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Types Of Financial Investments

1. Certificate of deposits(CDs)

This is a type of certificate that are mostly issued usually between the range of 30 days to 5 years that earn interest over the allocated period of time.

2. Bonds

Bonds is a loan an investor or individual make to an organisation in exchange for interest payment over a specified term.
When you purchase a bond, you are lending out your money to a company or government entity who pay you interest on y out r money and as well refund you the money you lend them.

3. Stocks

When you buy a company's stock, you become a part ownership interest of that company.  This gives you the opportunity to receive profits the company allocates to its owners.

4. Mutual Funds

Mutual funds are funds pooled together from different individuals and i3nvestors which are invested based on mutual agreement or strategy.

5. Insurance
6. Equity
7. Gold /Silver
8. Precious stones

Reasons Why You Should Go Into Financial Investment Financial investment is very important and it help you achieve all your life

Careful financial investment secures your life for the rainy days.

Important Things You Should do Before Investing Financially 

1. There are trustworthy financial advisors, but read the terms and conditions of any document relating to the investment you want to make. Know the risks factors, tenures and clauses before selecting a plan.

2. Staple all the related document and keep in a safe place.

3. Before signing your documents, make sure your investment plan guarantees significant return in future.

4. It is advisable to issue an account payee cheques in favor of the company rather than cash transaction.

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